It was unclear when the plans would be available but it is unlikely to affect consumers during the 2018 open enrolment period, which begins on 1 November.

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Media captionPresident Trump won big in Kentucky last year but the state also depends heavily on Obamacare

Supporters of the order say it will reduce the soaring costs of insurance premiums by allowing competition across the state lines.

But critics argue it could de-stabilise the Obamacare market by encouraging healthy consumers to leave their current plans, prompting a spike in premium costs for older Americans and those with pre-existing conditions.

The Trump administration is likely to face legal challenges from medical associations, consumer groups and some insurers who have railed against earlier repeal efforts.

The president added he would continue to press Congress to repeal and replace his predecessor’s signature health bill.